Asia Open - Overnight Highlights

EMERGING ASIA

EM currencies perform mostly stronger against the USD as risk sentiment recovers on the last trading day of the week. The biggest winners are IDR by 0.46%, followed by THB 0.29%, PHP 0.18%, CNH & KRW 0.14%, SGD 0.13%, CNY 0.08% and TWD 0.02%; while the largest losers are MYR 0.22% and HKD 0.01%.

USD/CNH is trading higher at 7.2379 from 7.2480 previously closed. Onshore spot market is trading higher at 7.2374 from 7.2432  previously closed. 12 month NDF diverged from both the on/offshore market and is trading lower at 7.0590 compared to 7.0684 previously closed.

USD/IDR spot market is trading lower at 16350 from 16428 previously closed. 1 month NDF is trading lower at 16353 from 16401 previously closed.

USD/INR onshore spot market is closed. 1 month NDF is trading lower at 87.19 from 87.17 previously closed.

NA Session

The only significant data release showed a sharp decline in the preliminary March Michigan CSI, to 57.9 from 64.7, with the 5-10 year inflation expectation surging to 3.9%, its highest since 1993, from 3.5%. Despite the startling data the FX response was limited, and equities enjoyed a significant bounce. 

Equity gains lifted the commodity currencies, AUD/USD to .6325 from around .63, while USD/CAD fell to 1.4375 from 1.4425. EUR/USD slipped back below 1.09 but sustained the bulk of its European gains. USD/JPY was marginally lower around 148.55 after peaking at 149. Long-term USD yields slipped on growth concerns despite a spike at the front end on Michigan CSI inflation expectations.